The controversy surrounding the BEAD broadband program highlights tensions between Republicans, led by Senator Ted Cruz, and the NTIA regarding technology bias and funding regulations. Cruz's assertion that the NTIA favors fiber networks has catalyzed calls for a thorough congressional review by early 2025. While the law requires that providers offer low-cost options, concerns persist over NTIA's influence on rate settings. Additionally, reports suggest looming pauses in BEAD funding, leading to uncertainty about the program's future, especially affecting areas predominantly represented by Republicans.
Cruz accused the NTIA of "technology bias" for prioritizing fiber networks over others, and calls for a review of BEAD funding plans moving into 2025.
The law requires providers funded by BEAD to offer low-cost broadband options, but Republicans argue NTIA has strayed into rate regulation.
A research note suggested that NTIA might have paused funding even if the Trump administration hadn’t attempted to freeze it, reflecting ongoing uncertainties.
New Street Research anticipates that despite a funding pause, it will be relatively short since the funding benefits largely Republican constituents.
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